Hiring teams proves cheaper than buying rival firms

By

Renée Schultes

February 6, 2006 5:00 p.m. GMT

As asset managers become more expensive to acquire, chief executives are discussing hiring teams, rather than buying rival groups. Fund managers are valued at 22 times future earnings at present, according to research by Morgan Stanley. Many managers are questioning the value of making a purchase.

Morgan Stanley Investment Management, which is considering making acquisitions and buying groups of staff, hired a team from Millennium Partners last month for its growing alternatives business.